PENGARUH LEVERAGE, GROWTH OPPORTUNITY, DAN FIRM SIZE TERHADAP KEPUTUSAN HEDGING PADA PERUSAHAAN CONSUMER GOODS INDUSTRY

Abstract

Hedging is what a company do to protect the company from exposure to foreign exchange. This research aims to examine the influence of firm characteristics proxied by leverage, growth opportunity, and the firm size on hedging decision making through annual financial reports published by consumer goods industry firms which is listed in the Indonesia Stock Exchange.The number of population in this research were 35 consumer goods industry companies. The sample is obtained by using purposive sampling method at consumer goods industry companies which listed in the Indonesia Stock Exchange during the 2013-2016 period and based on predetermined criteria then obtained a sample of 24 consumer goods industry companies. The analytical method used is logistic regression analysis with using SPSS version 24 software tool (Statistical Product and Service Solutions). The results of this research indicates that the leverage and firm size variables have positive and significant impact on hedging decisions, while the growth opportunity variable does not influenced the decision of hedging.
Keywords: leverage, growth opportunity, firm size, and hedging decisions.